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During 2021, Lavida Loca Company purchased trading securities with the following cost and market value on December 31, 2021.     Cost Market value A 300,000 400,000 B 1,500,000 1,700,000 C 3,800,000 3,900,000   The entity sold Investment C on January 10, 2022 for P 4,000,000   What is the unrealized gain or loss should be reported in the income statement for 2021?   a. 100,000 gain b, 100,000 loss c. 400,000 gain d. 400,000 loss

During 2021, Lavida Loca Company purchased trading securities with the following cost and market value on December 31, 2021.     Cost Market value A 300,000 400,000 B 1,500,000 1,700,000 C 3,800,000 3,900,000   The entity sold Investment C on January 10, 2022 for P 4,000,000   What is the unrealized gain or loss should be reported in the income statement for 2021?   a. 100,000 gain b, 100,000 loss c. 400,000 gain d. 400,000 loss

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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During 2021, Lavida Loca Company purchased trading securities with the following cost and market value on December 31, 2021.

 

 

Cost

Market value

A

300,000

400,000

B

1,500,000

1,700,000

C

3,800,000

3,900,000

 

The entity sold Investment C on January 10, 2022 for P 4,000,000

 

What is the unrealized gain or loss should be reported in the income statement for 2021?

 

a. 100,000 gain

b, 100,000 loss

c. 400,000 gain

d. 400,000 loss

 

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